Nvidia's Earnings Cause Stock Market Fluctuations

American stocks fell as stock indices experienced losses for the third consecutive day, influenced by uncertainties surrounding interest rate cuts. Investors focused on the high-risk Nvidia (NVDA) earnings report and the delayed September unemployment report.

The technology-heavy Nasdaq Composite (^IXIC) lost limited gains, dropping by 0.8%. The S&P 500 (^GSPC) showed a decrease of 0.9%. The Dow Jones Industrial Average (^DJI) experienced a decline of about 1.2%, or more than 550 points.

Wall Street began preparations for the Nvidia (NVDA) earnings report. As usual, this event is being closely watched, and this time, the stakes are higher. Concerns regarding major technology companies' valuations and investments in artificial intelligence suggest that the results will be a significant test against expectations. Stocks fell by 2% following the news that Peter Thiel's hedge fund, Thiel Macro, sold its shares in Nvidia.

A positive development in the technology sector came from Berkshire Hathaway (BRK-B) acquiring a partnership worth approximately $5 billion in Alphabet (GOOG, GOOGL). This move is seen as one of the latest attractive investments under the leadership of Warren Buffett. Following this announcement, Alphabet shares gained 3% in value.

Investors are also eagerly awaiting the anticipated September unemployment report. However, uncertainties remain regarding whether economic data will fully rebound, despite the federal government's shutdown ending.

This week's September job figures will be closely examined, as the cautious stance of Federal Reserve officials raises questions about the central bank's interest rate moves. Currently, traders are pricing in a 45% chance of an interest rate cut next month; this figure was 62% a week ago.

This week, investors will gain new insights into consumer strength with the earnings reports from Walmart (WMT) and leading retailers. Other significant names reporting include Home Depot (HD), Target (TGT), Lowe's (LOW), and Gap (GAP).

Despite slight declines, Bitcoin (BTC-USD) continues to monitor the health of the broader crypto market. Since the peak at the beginning of October, the price of the cryptocurrency has fallen below $92,000 from over $126,000.

The losses in the markets and the rising fear index VIX (^VIX) make the timing of this week's earnings announcement even more critical. If Nvidia's (NVDA) earnings do not appear as convincing as initially thought, the future of major tech stocks could be at risk.

For investors, it would be beneficial if Nvidia delivers a strong result and provides clear guidance, helping the market to move to higher levels.

This week, positive news regarding biotechnology companies Zymeworks (ZYME) and Jazz Pharmaceuticals (JAZZ) led to increases in their stock values. The progress these companies made in the treatment of stomach cancer attracted investors' attention.

Lastly, Netflix (NFLX) executed a 10-for-1 stock split, and despite making shares more accessible at current price levels, they have decreased by 0.2%.